Canadian company acquiring coal-to-liquids company

A Canadian company is acquiring the Australian energy firm that has proposed a $7.4 billion coal-to-liquids plant on Montana's Crow Indian Reservation.

The Australian Energy Co. last year signed an agreement with Crow leaders to develop an estimated 900-million-ton coal reserve on the reservation.

Now Vancouver-based Terra Nova Minerals Inc. is putting up an undisclosed sum of money for the Australian company – a transaction described as a "reverse takeover" that will leave Australian Energy executives in key leadership positions.

Australian Energy chairman Allan Blood will retain his title, and company shareholders will control 67 percent of the new entity, called Great Western Energy Inc. Terra Nova CEO Willie McLucas will be Great Western's president.